The stockholders' equities of Pal Corporation and Sip Corporation at January 1 were as follows (in thousands):

Question:

The stockholders' equities of Pal and Sip at January 1 were as follows (in thousands):
Pal Sip
Capital stock, $10 par .................. $6,000 ................. $3,200
Other paid-in capital ........................ 800 ................... 1,600
Retained earnings ........................ 2,400 .................. 1,200
Stockholders' equity ................... $9,200 ................. $6,000
On January 2, Pal issued 600,000 of its shares with a market value of $20 per share for all of Sip's shares, and Sip was dissolved. On the same day, Pal paid $20,000 to register and issue the shares and $40,000 for other direct costs of combination.
Required
Prepare the stockholders' equity section of Pal Corporation's immediately after the acquisition on January 2.
Balance Sheet
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